Seven Democratic senators have formally requested that the U.S. Department of Justice and Attorney General Pam Bondi provide further details on President Donald Trump’s recent pardon of Binance co-founder Changpeng “CZ” Zhao.
In an open letter sent Tuesday, Senators Elizabeth Warren, Chris Van Hollen, Bernard Sanders, Mazie Hirono, Richard Blumenthal, Jack Reed, and Jeffrey Merkley warned that the pardon “signals to cryptocurrency executives and other white-collar criminals that they can commit crimes with impunity.”
The lawmakers argue that the pardon raises serious concerns about accountability and the integrity of federal law enforcement. They further accused Trump of encouraging illicit activity “so long as they enrich him,” framing the move as a potential threat to the enforcement of federal law.
The letter follows similar criticisms from House Financial Services Committee Ranking Member Maxine Waters, who said earlier this week that
“Trump is doing massive favors for crypto criminals who have helped line his pockets.”
Alleged ties between Trump and Binance
This letter also raises questions about potential connections between Zhao, Trump, and Binance, suggesting that Trump’s family-linked crypto venture, World Liberty Financial (WLFI), has had operational and technical links with Binance. WLFI, launched late last year, operates in decentralized finance (DeFi) and issues the USD1 stablecoin.
Zhao may have facilitated introductions and meetings for WLFI leadership, though he publicly denied involvement in late May. Other sources indicate that Binance contributed to the development of USD1’s code. The senators suggested that Zhao’s pardon followed substantial lobbying efforts by Binance, including payments totaling more than $740,000 to Trump-linked lobbyists and advisors.
“After Mr. Zhao’s company provided President Trump and his family with a revenue stream worth millions of dollars, President Trump pardoned him for criminal activity that he admitted to conducting,” the senators wrote.
Potential impact on federal law enforcement
Lawmakers contend that the pardon could undermine the ability of federal authorities to enforce laws, particularly in the cryptocurrency sector. By pardoning a high-profile executive who previously pleaded guilty, the senators argue, Trump may have inadvertently, or deliberately, sent a signal that criminal behavior can be tolerated if it benefits politically connected figures.
Trump issued the pardon last week, defending his decision by saying that people had told him “what he did was not even a crime.” Zhao had pleaded guilty in 2024 to violating the U.S. Bank Secrecy Act by failing to maintain an effective anti-money laundering program at Binance.
Broader implications for the crypto industry
Zhao stepped down as Binance CEO in 2023 as part of the settlement agreement with US regulators. At the time, he admitted to errors in oversight and said stepping aside was “the right thing to do.” The exchange remains a central player in global cryptocurrency trading, processing more than $65 billion in transactions daily on average.
The pardon has sparked renewed debate over regulatory oversight of the cryptocurrency industry and the influence of political relationships on legal outcomes. Analysts warn that decisions of this nature could shape behavior in the sector, affecting not just executives but also the broader compliance culture within crypto firms.
As the DOJ and Attorney General respond to the Senate’s inquiry, the case highlights the complex intersection of politics, cryptocurrency, and law enforcement and the challenges of maintaining accountability in a rapidly evolving financial landscape.
Anastasiia G
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